Michigan's September Jobless Rate Continues Downward Trend

Michigan's September Jobless Rate Continues Downward Trend

Lansing – Michigan’s seasonally adjusted unemployment rate in September inched down by one-tenth of a percentage point to 4.0 percent, according to data released today by the Michigan Department of Technology, Management & Budget (DTMB). Total employment in the state was little changed, up slightly by 1,000 over the month, however the number of unemployed fell by 8,000. The net result was a 6,000 reduction in Michigan’s workforce in September.

The Michigan jobless rate in September 2018 was seven-tenths of a percentage point below the state’s September 2017 rate of 4.7 percent. The national jobless rate declined by five-tenths of a percentage point over this period. The state’s unemployment rate in September was three-tenths of a percentage point above the national rate. The U.S. jobless rate decreased by two-tenths of a percentage point over the month to 3.7 percent.

“Michigan’s labor market indicators were stable from August to September,” said Jason Palmer, director of the Bureau of Labor Market Information and Strategic Initiatives. “However, the state’s unemployment rate has fallen by seven-tenths of a percentage point since the beginning of 2018 while payroll jobs have risen consistently throughout the year.”

Monthly Labor Force Trends & Highlights

· The number of unemployed in Michigan fell below 200,000 in September for the first time since September 2000. However, the state’s workforce was over 250,000 above current levels in 2000.

· The state’s 2018 nine-month average unemployment rate of 4.5 percent was similar to Michigan’s 2017 annual rate of 4.6 percent. Michigan’s monthly jobless rates hovered around 4.7 percent from August 2017 through May 2018 but have been declining since June.

· From the second quarter to the third quarter 2018, Michigan’s unemployment rate fell by five-tenths of a percentage point from 4.6 to 4.1 percent. Over that period, total employment rose by 14,000 or 0.3 percent and the number of unemployed decreased by 21,000 or 9.4 percent.

· From the third quarter 2017 to the third quarter 2018, Michigan’s quarterly jobless rate moved down by five-tenths of a percentage point. Total employment rose by 32,000 or 0.7 percent and the number of unemployed declined by 22,000 or 9.8 percent, while the state’s workforce edged up by 10,000 or 0.2 percent. The national quarterly unemployment rate also dropped by five-tenths of a percentage point over this period.

MICHIGAN

Labor Force Estimates

Seasonally Adjusted

(Data in Thousands)

September

2017

August

2018

September

2018

Change

Month

Year

Civilian Labor Force

4,898

4,898

4,892

-6

-6

Employment

4,668

4,697

4,698

1

30

Unemployment

230

201

193

-8

-37

Rate (Percent)

4.7

4.1

4.0

xxx

xxx

Detroit Metropolitan Area’s September Jobless Rate Decreases

The Detroit-Warren-Dearborn Metropolitan Statistical Area’s (MSA’s) seasonally adjusted unemployment rate in September declined over the month by two-tenths of a percentage point to 4.0 percent, which matched the statewide rate. This was the lowest jobless rate recorded in the region so far in 2018 and was the area’s lowest rate since June 2017. The Detroit metro area unemployment rates have been very similar to the statewide rates for the last several years after running above Michigan’s rates for nearly a decade. Over the month, the Detroit MSA’s total employment level edged up by 2,000 while the number of unemployed declined by 4,000.

From September 2017 to September 2018, the Detroit metropolitan area recorded a workforce reduction of 6,000 as total employment moved slightly upward by 1,000 and the number of unemployed decreased by 8,000.

Detroit-Warren-Dearborn MSA

Labor Force Estimates

Seasonally Adjusted

(Data in Thousands)

September

2017

August

2018

September

2018

Change

Month

Year

Civilian Labor Force

2,118

2,113

2,112

-1

-6

Employment

2,026

2,025

2,027

2

1

Unemployment

92

88

84

-4

-8

Rate (Percent)

4.3

4.2

4.0

xxx

xxx

September Payroll Jobs Up Slightly

According to the monthly survey of employers, seasonally adjusted Michigan payroll jobs edged up in September by 2,000 to 4,439,000. A September seasonally adjusted job gain in Government along with minor job increases in Manufacturing, Financial activities, Professional and business services and Education and health services were mostly offset by job reductions in Construction (-2,000), Trade, transportation and utilities (-2,000) and Other services (-2,000).

Industry Employment Trends and Highlights

· Payroll jobs in the state rose for the second consecutive month in September to the highest level recorded so far in 2018.

· In 2018, Michigan payroll jobs advanced in seven of the first nine months.

· The over-the-month job decline in Construction was this sector’s first notable reduction in 2018. This reduction likely reflects the job impact of a road construction labor dispute.

· Manufacturing jobs in Michigan have been trending upward in 2018. Since February, Manufacturing jobs rose in the state by 7,000 or 1.1 percent.

· Education and health services posted a minor job increase in September to reach this sector’s highest level of the year. Other than two minor monthly reductions in March and July, jobs in Education and health services have been trending upward in 2018.

· From September 2017 to September 2018, payroll jobs in Michigan increased by 63,000 or 1.4 percent, which lagged the national gain over this period of 1.7 percent. The most pronounced numerical job additions in Michigan over the year were displayed in Professional and business services (+14,000), Construction (+11,000), Manufacturing (+11,000), Leisure and hospitality services (+10,000) and Education and health services (+8,000).

· Seasonally adjusted average weekly hours and earnings of production workers in manufacturing increased over the month as well as over the year.